BEIJING (Reuters) - Only China's yuan could rank with the dollar and euro as pillars of the global monetary system, given time and five key tests, Hong Kong's former Monetary Authority chief Joseph Yam was quoted as saying.
This post The Currency Wars’ “Pearl Harbor” appeared first on Daily Reckoning.
The most dramatic battle yet in the currency wars took place last Thursday. It was the financial equivalent of a Pearl Harbor sneak attack…
“I find it a bit surprising that he did not contact me” IMF Director Christine Lagarde told CNBC’s Steve Liesman that day, “but, you know, we’ll check on that.”
Hong Kong (AFP) - The stock exchanges of Hong Kong and Shanghai on Monday launch a much-anticipated trading link that will see billions of dollars in daily cross-border transactions and partially open up China's closeted equities markets to the world.
LUXEMBOURG (Reuters) - China's yuan currency is gaining importance in international trade and investment and might ultimately challenge the U.S. dollar, European Central Bank Executive Board member Yves Mersch said on Wednesday.
With 23 foreign central banks diversifying from US Dollars to Renminbi and the PBOC actively aiding numerous major financial hubs around the world with bilateral currency swap agreements, it seems yet another nail in the coffin of US dollar hegemony just got hit... *PBOC AIMS TO SET UP GLOBAL PAYMENT SYSTEM FOR YUAN: SEC. NEWS *PBOC TO MAKE GOLD, OIL FUTURES YUAN DENOMINATED: SEC. NEWS Nothing lasts forever, no matter how much you believe...
Tired of tapering talk? Well, just a bit more; but, then on to more pressing matters, such as the Occidental/Oriental monetary fulcrum and just upon whom (or what) this seesaw sits. Seems an investment in China might just not be what it seems to be. Think Three Paddy Hat Monty.
I remain in "negative awe" of China bulls who think the yuan is going to soon replace the US dollar as the world's reserve currency.As I have pointed out before - China's bond market is nowhere big or liquid enough; China's property bubble is the world's biggest; China's shadow banking system is on the verge of implosion, and Chinese growth is imploding.Readers know full well that I am not prone to US flag-waving.
China is the world's second largest economy, yet it exercises tremendous capital control including restrictions on its currency, the renminbi. Chinese officials have previously said that they want to make the currency fully convertible by 2015.